a
60 Cutter Mill Rd.
Suite 205
Great Neck, NY
11021
Tel: 516.444.3400
Fax: 516.444.3404

 

Press Releases

Contact:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400
SOURCE: Manhattan Bridge Capital, Inc.

 

 

Manhattan Bridge Capital, Inc. Reports Third Quarter Results

         
 NEW YORK, N.Y. November 14, 2011 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN)

Manhattan Bridge Capital, Inc. announced today that total revenues for the three month period ended September 30, 2011 were approximately $351,000 compared to approximately $306,000 for the three month period ended September 30, 2010, an increase of $45,000 or 14.7%. The increase in revenue represents an increase in lending operations. For the three month period ended September 30, 2011, $284,000 of our revenue represents interest income on the secured commercial loans that we offer to small businesses compared to $256,000 for the same period in 2010, and $67,000 represents origination fees on such loans compared to $51,000 for the same period in 2010.

Net income for the three month period ended September 30, 2011 was $0.03 per basic and diluted share (based on 3.553 million shares and 3.561 million shares, respectively), or $97,062, versus net income of $0.02 per basic and diluted share (based on 3.324 million shares and 3.380 million shares, respectively) or $56,854 for the three month period ended September 30, 2010. This increase in net income was mainly due to increases in revenue and other income, offset by increases in operating costs and expenses.

As of September 30, 2011 total shareholders' equity was $8,076,000 compared to $7,962,000 as of June 30, 2011 and $7,763,000 as of December 31, 2010.

Total revenues for the nine month period ended September 30, 2011 were approximately $1,031,000 compared to approximately $913,000 for the nine month period ended September 30, 2010, an increase of $118,000, or 12.9%. The increase in revenue represents an increase in lending operations. Revenue of approximately $842,000 for the nine month period ended September 30, 2011, compared to approximately $752,000 for the same period in 2010, represents interest income on the secured commercial loans that we offer to small businesses, and $189,000 represents origination fees on such loans compared to $161,000 for the same period in 2010.

Net income for the nine month period ended September 30, 2011 was $0.08 per basic and diluted share (based on 3.401 million shares and 3.416 million shares, respectively), or $264,979, versus net income of $0.11 per basic share and $0.10 per diluted share (based on 3.324 million shares and 3.372 million shares, respectively) or $352,387 for the same period in 2010, a decrease of approximately $87,000. This decrease in net income is mainly due to increases in operating costs and expenses, and the realized gain on the sale of marketable securities that were previously marked down which were recorded in the period ended September 30, 2010, in the amount of $151,000, offset by increases in revenue and other income.

Assaf Ran, Chairman of the Board and CEO stated, “The third quarter is in line with our constant increase of revenue and net earnings. Our recent relocation to the new headquarters is helping reduce expenses, and our achievements in regards to increase leverage position contribute to our growth.

At the end of the quarter, continuing to the beginning of the fourth quarter, we experienced a wave of loan returns. We see that as a positive sign and are investing the necessary efforts to redeploy the funds into new appropriate opportunities.” added Mr. Ran.

Manhattan Bridge Capital, Inc., provides short-term secured non-banking commercial loans to real estate investors (also known as hard money) to fund their acquisition and construction of properties located in New York Metropolitan area. We operate the web site: http://www.manhattanbridgecapital.com

This report contains forward-looking statements within the meaning of section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  Forward-looking statements are typically identified by the words “believe,” “expect,” “intend,” “estimate” and similar expressions.  Those statements appear in a number of places in this report and include statements regarding our intent, belief or current expectations or those of our directors or officers with respect to, among other things, trends affecting our financial conditions and results of operations and our business and growth strategies.  These forward-looking statements are not guarantees of future performance and involve risks and uncertainties.  Actual results may differ materially from those projected, expressed or implied in the forward-looking statements as a result of various factors (such factors are referred to herein as “Cautionary Statements”), including but not limited to the following: (i)  the successful integration of new businesses that we may acquire; (ii) the success of new operations which we have commenced and of our new business strategy; (iii) our limited operating history in our new business; (iv) potential fluctuations in our quarterly operating results; and (v) challenges facing us relating to our growth.  The accompanying information contained in this report, including the information set forth under “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, identifies important factors that could cause such differences.  These forward-looking statements speak only as of the date of this report, and we caution potential investors not to place undue reliance on such statements.  We undertake no obligation to update or revise any forward-looking statements.  All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the Cautionary Statements.


MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

Assets

September 30, 2011
(Unaudited)

December 31,2010
(Audited)

Current assets:

   

 

Cash and cash equivalents

$ 1,263,125

$ 386,023

Short term loans

6,274,049

8,156,293

         Interest receivable on short term loans

63,295

91,593

Other current assets

31,660

13,427

       Total current assets

7,632,129

8,647,336

 

 

 

Investment in real estate

294,321

---

Long term loans receivable

2,174,262

---

Property and equipment, net

749

2,425

Security deposit

6,349

17,515

Investment in privately held company, at cost

100,000

100,000

Deferred financing costs

81,887

109,183

                
            Total assets

 

$ 10,289,697

 

$ 8,876,459

Liabilities and Shareholders’ Equity


Current liabilities:

 

 

Short term loans and line of credit

$ 1,459,465

$ 300,000

Accounts payable and accrued expenses

16,475

56,405

Deferred origination fees

104,015

76,428

Income taxes payable

133,786

180,513

       Total current liabilities

1,713,741

613,346

Long term liabilities:

 

 

Senior secured notes

500,000

500,000

                 Total liabilities

2,213,741

1,113,346

             
Commitments and contingencies

 

 

Shareholders’ equity:

 

 

Preferred shares - $.01 par value; 5,000,000 shares authorized; no shares issued

 

---

 

---

Common shares - $.001 par value; 25,000,000 authorized; 4,405,190 issued and 4,324,459 outstanding

 

3,405

 

3,405

Additional paid-in capital

9,636,710

9,588,849

Treasury stock, at cost- 80,731 shares

(241,400)

(241,400)

Accumulated deficit

(1,322,759)

(1,587,741)

          Total shareholders’ equity

8,075,956

7,763,113

            
 Total liabilities and shareholders’ equity

 

$ 10,289,697

 

$ 8,876,459


MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

 

Three Months
Ended
September 30,

Nine Months
Ended
September 30,

 

2011

2010

2011

2010

 

Interest income from short term loans

 

$ 283,821

 

$ 255,869

 

 $ 842,222

 

 $ 751,733

Origination fees

          67,220

         50,593

189,229

160,932

     Total Revenue

351,041

     306,462

    1,031,451

    912,665

 

  

  

 

 

Operating costs and expenses:

 

 

 

 

Interest expense on loans and line of credit

   39,482

6,900

84,446

21,627

General and administrative expenses

205,087

182,855

595,616

507,382

     Total operating costs and expenses

        244,569

       189,755

680,062

       529,009

Income from operations

        106,472

        116,707

       351,389

       383,656

 

 

 

 

 

Interest and dividend income

---

177

---

4,342

Realized gain on marketable securities that were previously marked down

---

---

---

151,419

Other Income

   31,590

---

70,590

---

    Total other income

          31,590

               177

         70,590

       155,761

Income from operations before
 income tax expense

                                  138,062

116,884

           421,979

           539,417

Income tax expense

(41,000)

(60,030)

(157,000)

(187,030)

Net Income

   $     97,062

   $   56,854

   $  264,979

   $  352,387

 

 

 

 

 

Basic and diluted net income per common share outstanding:

 

 

 

 

--Basic

    $     0.03

    $     0.02

           $ 0.08

           $ 0.11

--Diluted

   $     0.03

   $     0.02

           $ 0.08

           $ 0.10

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

 

 

--Basic

    3,552,720

    3,324,459

   3,401,382

   3,324,459

--Diluted

    3,561,386

    3,380,406

   3,416,189

   3,371,971

 


MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)

            Nine Months Ended September 30,

 

 

 2011

 

 2010

Cash flows from operating activities:

 

 

 

 

  Net income

 

    $   264,979

 

    $   352,387

  Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

  Amortization of deferred financing costs

 

27,296

 

---

  Depreciation

 

1,677

 

2,274

  Non cash compensation expense

 

47,862

 

59,099

  Realized gain on sale of marketable securities that were previously marked down

 

---

 

(151,419)

  Changes in operating assets and liabilities:

 

 

 

 

       Interest receivable on loans

 

28,298

 

(9,107)

       Other current and non current assets

 

(7,067)

 

(46,760)

       Accounts payable and accrued expenses

 

(39,929)

 

(17,496)

       Deferred origination fees

 

27,587

 

(62,125)

       Income taxes payable

 

(46,727)

 

(16,669)

              Net cash provided by operating activities

 

303,976

 

110,184

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

   Proceeds from sale of marketable securities

 

---

 

431,864

   Investment in real estate (net of proceeds of $380,679  from partial exercise of option - see note 4)

 

(294,321)

 

---

   Issuance of short term loans

 

(6,504,036)

 

(3,912,500)

   Collections received from loans

 

6,212,018

 

3,322,921

             Net cash used in investing activities

 

(586,339)

 

(157,715)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

    Proceeds from loans and line of credit, net

 

1,159,465

 

300,000

              Net cash provided by financing activities

 

1,159,465

 

300,000

 

 

 

 

 

Net increase in cash

 

         877,102

 

         252,469

Cash and cash equivalents, beginning of the year

 

386,023

 

707,449

Cash and cash equivalents, end of period

 

    $ 1,263,125

 

    $   959,918

 

 

 

 

 

Supplemental Cash Flow Information:

 

 

 

 

Taxes paid during the period

 

$     203,727

 

$     203,669

Interest paid during the period

 

$       84,446       

 

$       21,627       

Non-cash Investing and Financing Activities:

 

 

 

 

Forgiveness of debt

 

---

 

$       27,961